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Arkansas lands $5.2 million in Payments in lieu of Taxes program

WASHINGTON – The Department of Interior Thursday sent more than $5.2 million to Arkansas in compensation for federal lands exempt from local property taxes.

The $5,277,001 heading to Arkansas under the 2012 Payments in lieu of Taxes program represents a 7.2 percent increase from last year.

In Southeast Arkansas, the counties, funds and number of federal acres include:

• Arkansas, $17,169; 6,958

• Chicot, $1,115; 452;

• Desha, $9,932; 4,025;

• Jefferson, $8,646; 3,504

“Over the last three years we have fought for and delivered on the promise that the federal government should compensate local governments for lost tax revenue from federal lands, so that they can provide essential public services such as police, fire protection and emergency response programs,” said Interior Secretary Ken Salazar.

Local governments in 55 Arkansas counties are receiving payments ranging from $198 for Independence County to $541,738 for Montgomery County. Eleven counties are receiving no funds.

Montgomery County is being compensated for 357,506 acres of federal land while Independence has just 80 acres of federal land.

Aside from having nontaxable federal lands, local governments must also provide vital government services – such as public safety, housing or social services – to qualify. Payments are based on acreage and population.

The Department of Interior Thursday paid out $393 million to 1,850 local governments through the program. Funding for the program was boosted under the 2008 Emergency Economic Stabilization Act, which expires this year. The Obama Administration’s 2013 budget proposal would extend it for another year.

A complete list of the Arkansas County payments can be found at http://www.nbc.gov/pilt/search.cfm.